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Property Boom in Post Brexit: What’s causing it?

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It appears Brexit has kick-started a housing boom in the UK. This is most apparent in the capital, according to The Telegraph.

The UK left the European Union on 31 January 2020 and is now in a transition and negotiation period until the end of this year. Until then, the full impact of Brexit on the economy in the UK remains unclear. And so there are still many questions surrounding house prices and the property market.

Despite this, a leading independent real estate company has found that the number of prospective buyers registering with them has risen to its highest total in more than 15 years.   

Many others are seeing unprecedented levels of buyer interest and are having to extend waiting lists and stagger clients.

So how is Brexit prompting this reversal of fortune in the property industry? What exactly is triggering this spike?

Property boom: Brits returning home?

One reason is said to be the return of expat Brits.

The Office for National Statistics has stated that there are more than 780,000 Britons living elsewhere in the EU.

A study conducted by the Migration Policy Institute has found that factors which are encouraging Brits to return to the UK include worries over dwindling funds due to a falling pound, and the security of guaranteed NHS services back home.

Over a quarter of those living elsewhere are retired. UK pensioners living in the EU currently benefit from the S1 certificate, which entitles them to the same healthcare as nationals of the countries in which they are living. Now there is a level of uncertainty surrounding this, with some suggesting the Government can only maintain this agreement for three more years.

We are yet to see how many will return, particularly while the UK is still in a transition period. But with peace of mind at the top of the list, there are good reasons why Brits would return and so it is likely that a large number will.

Property boom: Are people panic selling?

According to Which?, the highest number of property transactions (since the referendum in 2016) were seen in December 2019, supposedly due to the renewed confidence caused by the general election result of a Conservative majority rule.

But with concerns that a no-deal Brexit could cause house prices to fall, sellers may well be feeling the urge to sell sooner rather than later. Also buyers are using the word ‘Brexit’ to their advantage. Uncertainty over its effects has meant that sellers are accepting lower offers.

However, it does appear that many people who are looking to sell are sticking to their guns. Data agency TwentyCi found that 798,000 homes were withdrawn from the market over the course of 2019.